A Energy Efficient Lighting Quick, Practical and cost-effective way to save energy An introduction to the European Lighting Industry’s Roll Out Member States (ROMS) Programme Our agenda today About us Setting the scene Overcoming the obstacles - What can be done? How can we help you? Page 2 About us Page 3 European Lamp Companies Federation (ELC) 7 Member companies HID collectively employ over 50,000 people in Europe account for 5 billion Euro European turnover www.elcfed.org Page 4 European Luminaires and Gear Industry (CELMA) 18 National Manufacturers Associations for Luminaires and Electrotechnical Components for Luminaires Represents around 1200 companies (majority of small and medium-sized companies) In 14 EU countries Directly employ more than 60 000 people Generate around 10 billion Euro annually http://www.celma.org Page 5 The lighting industry ROMS (Roll Out Member State) Programme The first joint lighting industry national outreach programme on energy efficiency Currently, one of few such joint industry programmes in Europe Currently operating actively in 12 countries and soon operating in 27 (+2) European countries Page 6 Working together to Support European governments to develop policy and other measures that deliver significant CO2 emission reductions through increasing the uptake of energy efficient lighting. Help governments to meet their National and European targets in a quick, practical and cost effective way. Help to identify the barriers to change and assist end users to overcome these barriers. Work with a range of stakeholders (our value chain, NGOs, retailers etc) to develop and communicate user friendly information to end consumers on how to achieve savings through energy efficient lighting technology. Page 7 Setting the scene Page 8 The EU’s new climate goals Not just hot air… Background Political changes in the EU and outside are making aggressive climate policy a reality High energy prices and political concerns over energy producing states has made energy a “Head of State” issue As Europe looks for a new vocation, energy policy is the leading contender, making it a Presidential issue New targets 20% Emission Reduction by 2020 30% if others make similar pledges 60-80% emission reduction by 2050 20% Energy Efficiency by 2020 Page 9 Lamps ICONIC to transition to a Low Carbon Economy… CE | Brussels - EC/Berlaymont | P-011945/00-03 | 08/03/2006 José Manuel Barroso, President of the European Commission and Andris Piebalgs, Member of the European Commission in charge of Energy at the press conference for the presentation of the Green Paper on Energy. March 2006 Page 10 Lighting – a significant consumer of electricity Lighting consumes 14% of all electricity consumption within the EU and 19% of global electricity consumption International Energy Agency “Lighting requires as much electricity as is produced by all gas-fired generation and 15% more than produced by either hydro or nuclear power”. Light’s Labour’s Lost – Policies for Energy-efficient Lighting. IEA Page 11 The current picture Over 60% of all Europe’s lighting = inefficient 1/3 of street lighting in Europe still based on old, outdated and inefficient technology current switch over rate is 3% per year - meaning it will take another generation to upgrade average life-time of lighting installation = 40 years new technology available, more energy efficient and better quality light More than 75% of office lighting systems still inefficient current switch over rate is 7% per year average life-time of lighting installation = 25 years huge differences in efficiency between old and new systems (energy saving potential 30-80%) Approximately 85% of lamps currently in EU homes are energy inefficient. Page 12 Potential savings – an example TWh/year 400 Other uses Circulation pumps 350 PCs Standby 300 Television 250 Dishwashing Clothes-drying 200 Clothes-washing Refrigeration 150 Lighting Cooking 100 Water heating 50 0 1990 Space cooling Space heating 1995 2000 2005 2010 2015 2020 2025 2030 Page 13 The facts Estimated savings Savings potential (per year)* CO2 (Million tonnes) Savings potential (KWh) = 0.37 kg CO2/kWh*** Savings potential euros (@ 15.28 Euro per 100 kw/h**) Domestic Lighting 23 62,162,162,162 € 9,498,378,378.38 Office Lighting 8 21,621,621,622 € 3,303,783,783.78 Industrial Lighting 8 21,621,621,622 € 3,303,783,783.78 Street Lighting 3.5 9,459,459,459 € 1,445,405,405.41 Total 42.5 114,864,864,865 € 17,551,351,351.35 * Figure is based on the latest (conservative) industry estimates for the a total switch to energy efficient street, office, industry and domestic lighting in the EU (27). Detailed savings potential figures from each EU member states are in the process of being calculated by the ROMS programme. ** Figure courtesy of EUROSTAT - Statistics in Focus: "Electricity prices for EU households and industrial consumers on 1 January 2007“ *** Figure courtesy of the International Energy Agency - 0.37kg CO2/kWh - CO2 EMISSIONS FROM FUEL COMBUSTION (2006 Edition) - II. 61 14 Page A triple win! 1. WIN for the environment through achieving significant reductions in emissions of CO2 . 2. WIN for society through improved and innovative energy efficient light sources in the work place and at home. 3. WIN for the and growth government, lower energy economy through delivering more jobs from innovation, financial savings to businesses and individual citizens from costs. Page 15 The obstacles to making the switch Page 16 Budgets Budgets geared towards short term costs rather than long term savings Who pays? Many private and commercial users (people in rented accommodation, offices, small companies) do not pay directly for the buildings’ energy use therefore no sense of responsibility Lack of awareness of the costeffective savings potential of energy efficient lighting technology Page 17 Free riders Poor market surveillance systems mean that sub standard products enter onto Europe’s lighting market This undermines consumer confidence in energy efficient lighting technology. Page 18 Overcoming the obstacles What can be done? Page 19 The Lighting Industry Strategy 1.Public awareness/ education 2.Building regulations and codes 3.Green Procurement 4.Financial incentives (e.g. VAT) 5.Financial discincentives (e.g. Green Taxes) Stimulate DEMAND of most efficient products MOST EFFICIENT LIGHTING PRODUCTS AND SYSTEMS LEAST EFFICIENT LIGHTING Objective Increase the uptake of energy efficient lamps in the EU PRODUCTS AND SYSTEMS 1. Minimum Energy Performance Standards for lamps 2. Amended CE Label for energy efficient lamps 3. International standards and voluntary agreements (e.g. CFLi quality charter) Restrict AVAILABILITY of least efficient products Page 20 European legislative tools to support strategy • End Use Energy Services Directive (ESD) • Energy Performance of Buildings Directive (EPBD) Stimulate DEMAND of most efficient products MOST EFFICIENT LIGHTING PRODUCTS AND SYSTEMS LEAST EFFICIENT LIGHTING Objective Increase the uptake of energy efficient lamps in the EU PRODUCTS AND SYSTEMS • Eco-Design Directive (EUP) Implementing measures on Street, Office and Domestic Lighting • Labelling Directive Restrict AVAILABILITY of least efficient products Page 21 The Opportunities (1) EU Member States are required to establish 3 national energy efficiency action plans (NEEAPs) under the Energy End-Use Efficiency and Energy Services Directive (ESD). The European Commission and national policy makers are currently formulating minimum energy performance standards for Street, Office and Domestic lighting products. These will eventually become implementing measures under the EUP Directive Page 22 The Opportunities (2) The Energy Performance in Buildings Directive (EPBD) – that aims to ensure that building standards across Europe placed a high emphasis on minimising energy consumption will be revised in 2009. It is widely recognised that “market-based instruments” such as green taxes or reductions on value added tax (VAT) can help get the prices of ‘green goods’ - like energy efficient lighting - right. In 2007, the European Commission will propose further guidance to strengthen Green Public Procurement (GPP) in the EU. They will also be debating whether GPP should be compulsory for public procurement or remain indicative. Page 23 How can we help you? Page 24 How can we help you? Help you develop policies and initiatives to support the market transformation to more energy efficient lighting and deliver significant CO2 emission reductions in a quick, practical and cost effective way Provide technical information about energy efficient lighting - alternatives, savings potentials, procurement guidelines etc Help to identify the barriers to change Work with a range of stakeholders (our value chain, NGOs, retailers etc) to develop and communicate user friendly information to assist end users to overcome these barriers. Provide information and best practice examples from our colleagues in Europe and share information on key developments Page 25 Some questions What market transformation programmes/ measures/ policies initiatives are currently in place for lighting? In homes In businesses In the public sector How recent European initiatives (ESD and national action plans, EUP, EPBD) being developed at a national level? Is lighting a key element of your national action plan on energy efficiency? Are you currently working on your national position on the EUP implementing measures for lighting? Will you be representing your member state on the EUP regulatory committee? What kind of information would you find useful from our industry? Are you interested in initiatives from elsewhere in Europe? How do you prefer to receive information? Page 26 Thank you Page 27